Chipmaking giants Intel and Taiwan Semiconductor Manufacturing Company (TSMC) are reportedly teaming up for a joint venture. The two firms are said to have reached a tentative agreement for a venture that will operate Intel’s chipmaking facilities, according to The Information.
TSMC will have a 20% stake in the new venture. Rather than funding the stake with its capital, TSMC will share some of its chipmaking practices with Intel employees and train them. This discussion was reportedly started by the Trump administration, in an attempt to boost Intel’s turnaround efforts.
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In March, the Taiwanese chipmaker planned to joined hands with the giant GPU-maker Nvidia, Advanced Micro Devices (AMD), and Broadcom (AVGO) to operate Intel’s semiconductor foundries. Recently, TSMC previously pledged $100 billion in developing the U.S. semiconductor production.
Intel’s foundry division produces chips for third-party customers. The business has long been the subject of deal speculation, including a report last month that TSMC approached several other chipmakers about a joint venture to operate Intel’s chipmaking facilities.
Intel shares gained 2% Thursday, while TSMC shares lost close to 8%, during a time of broad-base decline with concerns growing about the effects of tariffs on markets. This deal comes a day after President Trump announced far-reaching new tariffs on nearly all U.S. trading partners.
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This comes shortly after the appointment of Lip-Bu Tan as CEO. Tan succeeds interim co-CEOs David Zinsner and Michelle Johnston Holthaus. He’ll also rejoin the Intel Board of Directors after stepping down from the board in August 2024, Intel said. Zinsner will remain Intel’s CFO, while Johnston Holthaus will remain CEO of the company’s Intel Products division.
Tan is a long-time tech investor, who formerly served as CEO of Cadence Design Systems. He has also previously been manager at two energy firms, EDS Nuclear and ECHO Energy, and a partner at the Walden USA investment fund before founding venture capital firm Walden International in 1987.